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COUNTRY COMMENTS BY JERRY STOWELL CATTLE By: Jerry Stowell At 10:57 Oct LC are 20 better at 98.30, Dec LC down 5 at 100.70 while September Feeders are trading 50 lower at 115.77. Corn is trading 7 higher. Noon Beef saw choice up 7 at 163.93, while select was up 18 at 157.74. Volume was 80 loads. The latest CME Feeder Index was 114.69 down 2. We expect that Index to rise 48 points tonight to the 115.57 area. Cash Fed asking prices are starting the week out at 160 & 101 North and 100 to 101 South. Packers are buying cattle for next weeks holiday shortened kill week. Our cash call is steady weak. Weekly support for the October LC contract is 97.25. We still feel that the current pullback is a correction and after this week the cattle market will be firming back up. Corn is finally getting to the Feeders. We feel that 115.5 needs to and will hold this week on any further weakness. GRAINSGrains Update by Darrell Holaday It has generally been a slow morning in the grains. The initial strength in corn and wheat has weakened some at mid-day, but the price movement has been slow. Soybeans have been the weak link throughout the day, trading on both sides of unchanged from Friday. The weakness in soybeans is a little bit difficult to understand as the strength in corn is primarily being fueled by ideas that the corn yields are disappointing. If the corn yields are truly disappointing, then soybean yields will be disappointing. Soybeans have been stressed more than the corn. Corn is also being supported by strength in the wheat with rain in Germany delaying yields. The weakness in the corn basis is a real concern because it is very much like the wheat market in which the basis was extremely weak, but futures continued to rally. The market is begging producers to store the corn crop and they will do that given the difference in the basis bids (stronger) and the carry in the futures contract versus the spot contracts. Weak basis and a lot of carry used to be negative for a market, but that does not seem to be true today. At mid-day corn is up .06, soybeans down .01, and wheat is up .19. THE DATA CONTAINED HEREIN IS BELIEVED TO BE DRAWN FROM RELIABLE SOURCES BUT CANNOT BE GUARANTEED, NEITHER THE INFORMATION PRESENTED NOR ANY OPINIONS EXPRESSED CONSTITUTE A SOLICITATION OF THE PURCHASE OF SALE OF ANY COMMODITY. THOSE INDIVIDUALS ACTING ON THIS INFORMATION ARE RESPONSIBLE FOR THEIR OWN ACTIONS. COMMODITY TRADING MAY NOT BE SUITABLE FOR ALL RECIPIENTS OF THIS REPORT. THE RISK OF LOSS IN TRADING FUTURES AND OPTIONS CAN BE SUBSTANTIAL. EACH INVESTOR MUST CONSIDER WHETHER THIS IS A SUITABLE INVESTMENT. ALL RECOMMENDATIONS ARE SUBJECT TO CHANGE AT ANY TIME. PAST PERFORMANCE IS NOT INDICATIVE OF FUTURE RESULTS.
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